According to IOL and Novus Media, this is one of the largest interventions involving the Motor Industry Staff Association (MISA) this year, as the influx of Chinese automotive brands intensifies competition and pressures local operators.
The restructuring was carried out under Section 189 of the Labour Relations Act, following Motus’ reporting of a 1% decline in revenue to R112.60bn for the year ending June 30, alongside a slight drop in operating profit to R5.48bn. Reduced contributions from new vehicle sales, amounting to R3.33bn (6%), particularly in international operations, were cited as key factors.
Martlé Keyter, MISA chief executive officer, operations, said the union worked to mitigate the impact on employees and resist unreasonable cuts to long-standing benefits. "Initially, up to 900 employees faced potential remuneration and benefit realignments. MISA’s engagement significantly reduced the number directly affected," Keyter added.
Despite these efforts, Keyter expressed concern about proposed reductions of up to 30% in cost-to-company (CTC) packages, especially given unclear calculation methodologies. She confirmed that MISA did not sign an agreement at the conclusion of the final facilitation session and continues to assess the reasonableness and fairness of the implemented changes.
The retrenchments and ongoing changes underscore the economic pressures facing South Africa’s automotive retail sector and the critical role of unions in negotiating fair outcomes for employees.
